Question

Since commercial finance companies offer loans to higher-risk customers than commercial banks, the interest rates they charge are usually ________ than rates charged by banks.

Answer 1

Answer:

......the rates they charge are usually HIGHER than rates charged by banks.

Explanation:

the higher the risk of the loan might be the higher the fees charged will be too

Answer 2

Answer:

Since commercial finance companies offer loans to higher-risk customers than commercial banks, the interest rates they charge are usually Higher than rates charged by banks.

Higher

Explanation:

There is a big difference between finance companies and banks. That is the exposure they have because they don't have deposits from which they can profit by lending that money to someone else. So, as a cause of their higher level of exposure, they charge a higher interest than banks when they lend money to individuals. They also, don't ask for collateral to secure the bank in case the individual defaults the payment. Nevertheless, they have special insurances for these operations.